The following data relate to the operations of Dillinger Company, a wholesale distributor of consumer goods:

Current assets as of March 31:
Cash	$	16,000
Accounts receivable	$	28,800
Inventory	$	16,940
Buildings and equipment (net)	$	310,000
Accounts payable	$	53,500
Capital stock	$	57,000
Retained earnings	$	261,240

a.	Gross margin is 30% of sales.
b.	Actual and budgeted sales data:

March (actual)	$ 96,000
April	$ 121,000
May	$ 145,000
June	$ 153,000
July	$ 65,000

c.	Sales are 70% for cash and 30% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are the result of March credit sales.
d.	Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold.
e.	25% of a month's inventory purchases is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable at March 31 are a result of March purchases of inventory.
f.	Monthly expenses are as follows: salaries and wages, $29,500; rent, $5,300 per month; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $8,000 per month(includes depreciation on new assets).
g.	Equipment costing $7,000 will be purchased for cash in April.
h.	The company must maintain a minimum cash balance of $5,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month; borrowing must be in multiples of $1,000. The annual interest rate is 12%. Interest is paid only at the time of repayment of principal; figure interest on whole months (1/12, 2/12, and so forth).